MARKET EMOTIONS CYCLE GRAPHIC

Investment cycles starts Frm depression to optimism and ends at euphoria till it again reach to panic ..cycle goes on best example suzlon depression panic of yrs wid bad news went 6 rs when risk depression attracts buying went to level of optimism .36 and again at 20..bt sometimes above optimism need fundamentals so concept is mkt or stock above optimism level is trading level nt investment level.. if investment is at depression level. . till optimism level reaches its at good value..and reward..bt above optimism is like breakouts.. now cnx realty sector is 80% down from peak its in panic to depression level..it bouncing till optimism bt above that need fundamentals n reforms ratecuts to help.. so as a investor this zone attracts buying in equities as a trader it creates mixed results.... Cnx IT fundamentals strong pharma auto so they r much above optimism and Excitement... this is just observation....

http://www.mudraa.com/trading/204236/0/market-emotions-cycle-graphic-hemant-.html

sources : denim